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2025 Supreme(AP) 605

IN THE HIGH COURT OF ANDHRA PRADESH
T MALLIKARJUNA RAO, J.
Veeravilli Kamesh Naga Venkateswararao, S/O. Nageswararao - Appellant 
Versus
The State Of A.P., High Court of A.P., Hyderabad. – Respondent 
Criminal Revision Case No. 1829 of 2009
Decided on : 13-08-2025

Advocates:
Advocate Appeared:
For the Appellant : T S B V RAMA REDDY
For the Respondent: PUBLIC PROSECUTOR

The court held that timely compliance with licensing requirements negates grounds for confiscation, emphasizing the necessity of just legal procedures.

Headnote:(A) Essential Commodities Act, 1955 - Section 6-A - Criminal Procedure Code, 1973 - Sections 397 to 401 - Revision of confiscation orders - Court clarified its revisional powers, stating that interference is warranted only in cases of glaring errors or miscarriages of justice. - The appellant's license renewal application was filed timely, within the grace period established by the relevant government order. - The learned Sessions Judge initially directed confiscation of 40% of seized stock; however, the appellant challenged this on grounds of timely compliance with licensing requirements. - The court acknowledged the absence of any prior violations, categorizing the circumstances as bona fide and unsustainable for confiscation, ultimately allowing the appeal and nullifying the confiscation orders. (Paras 5, 8, 15, 18)

(B) Revision - Scope and Standards - The court confirmed that a revision court does not hold authority to overturn lower court findings unless clearly erroneous. (Paras 9, 10)

Facts of the case:
The petitioner was accused of illegal hoarding and operating without a food grain license, leading to the seizure of 2,794 bags of rice. The petitioner asserted timely efforts to renew the license, undermining the basis for confiscation.

Findings of Court:
The court identified that the confiscation orders lacked legal justification given the compliance demonstrated by the petitioner, warranted a full return of the confiscated stock or its value.

Issues: Whether the appellant's actions justified the confiscation of stock and the legality of the orders imposed.

Ratio Decidendi: The High Court underscored that confiscation is unwarranted when timely actions are taken to comply with regulatory requirements, reaffirming the principle against arbitrary enforcement that creates injustice.

Result: Revision case allowed; confiscation orders set aside.

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ORDER:

T MALLIKARJUNA RAO, J.

1. This Criminal Revision Case is filed against the Judgment dated 12.10.2009, passed in Criminal Appeal No.41 of 2009 by the learned District and Sessions Judge, Visakhapatnam (hereinafter referred to as 'the 1st Appellate Court'), whereby the 1st Appellate Court partly allowed the appeal by confirming the Order of the District Collector dated 02.09.2009, passed in C.C.No.539 of 2008, relating to confiscation; however, it modified the quantum of confiscation from 100% of the seized stock to 40% of the seized stock.

2. The parties to this Criminal Revision Case will hereinafter be referred to as described before the District Magistrate, for the sake of convenience.

3. The brief averments of the case are that on 04.09.2008, the District Supply Officer, Visakhapatnam (City), acting on credible information about illegal hoarding, along with the Dy. Superintendent of Police, Vigilance and Enforcement Department, conducted a surprise inspection at Sri Veeravalli Traders, Jabbarithota, Visakhapatnam. The accused, proprietor, was found operating without a foodgrain licence, lacking bills, sales records, and stock registers. A total of 2,794 bags (698.50 quintals) of rice were seized on-site for being stored without authorization. The seized stock was handed over to Swami Rice Traders for safe custody. A case was filed under Section 6 -A of the Essential Commodities Act, 1955, in the Collector's Court, Visakhapatnam.

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4. Heard learned counsel appearing on both sides.

5. In Sanjaysinh Ramrao Chavan v. Dattatray Gulabrao Phalke & Anr, [2015 (3) SCC 123] it has been held by the Hon'ble Supreme Court as follows:

Revisional power of the Court under Sections 397 to 401 of Cr.PC is not to be equated with that of an appeal. Unless the finding of the Court, whose decision is sought to be revised, is shown to be perverse or untenable in law or is grossly erroneous or glaringly unreasonable or where the decision is based on no material or where the material facts are wholly ignored or where the judicial discretion is exercised arbitrarily or capriciously, the courts may not interfere with decision in exercise of their revisional jurisdiction.

6. As far as the scope of power of this Court while exercising revisionary jurisdiction under Section 397 is concerned, the Hon'ble Apex Court in Krishnan and another Versus Krishnaveni and another , [(1997) 4 Supreme Court Case 241], has held that in case Court notices that there is a failure of justice or misuse of judicial mechanism or procedure, sentence or Order is not correct, it is salutary duty of the High Court to prevent the abuse of the process or miscarriage of justice or to correct irregularities/incorrectness committed by inferior criminal Court in its judicial process or illegality or sentence or Order. The relevant para of the Judgment is reproduced as under:

"8. The object of Section 483 and the purpose behind conferring the revisional power under Section 397 read with Section 401, upon the High Court is to invest continuous supervisory jurisdiction so as to prevent miscarriage of justice or to correct irregularity of the procedure or to mete out justice. In addition, the inherent power of the High Court is preserved by Section 482. The power of the High Court, therefore, is very wide. However, the High Court must exercise such power sparingly and cautiously when the Sessions Judge has simultaneously exercised revisional power under Section 397 (1). However, when the High Court notices that there has been failure of justice or misuse of judicial mechanism or procedure, sentence or Order is not correct, it is but the salutary duty of the High Court to prevent the abuse of the process or miscarriage of justice or to correct irregularities/incorrectness committed by inferior criminal Court in its judicial process or illegality of sentence or Order."

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7. While exercising revisional jurisdiction, this Court is to examine the correctness, legality, and propriety of the

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